A silent force is at work in the story of India’s growth into an economic superpower. It is reshaping markets and redefining success. It is a movement not born in boardrooms but in workshops, kitchens, and start-ups operating across the length and breadth of the country. It is the story of India’s Micro, Small, and Medium Enterprises (MSMEs), and it is nothing short of a revolution.

  • In Kolkata, Raghav Agarwal of Umay Benaras is weaving heritage Bararasi traditions into high-street global luxury fashion. By blending age-old weaving traditions with modern design sensibilities, he has created a brand that not only commands a premium but also restores dignity for local artisans who are its heart.
  • In Darbhanga, Shravan Kumar Roy turned a humble superfood ‘makhana’ into a gourmet snack brand by fusing his food-tech expertise with regional pride. His focus on value addition and smart packaging created new markets for a traditional product, making it aspirational and accessible.
  • Gaurang Agashe’s journey with Unbox Your Desire is one of bold reinvention. Starting with food delivery, he has now pivoted into a tech-first platform for pharma logistics and home services, proving that a single, purpose-driven idea can be the foundation for an entire ecosystem of solutions for real-world needs.
  • In Burdwan, Nandini Bhattacharyya of APN Industries defied deep-seated social biases in the manufacturing sector to build a successful electrical components business. Her story is a powerful reminder that quality and persistence can overcome any prejudice.
  • In Gurugram, Utkarsh Khandelwal’s Infloso AI is not just building a business – it is defining the future of marketing. His AI-powered marketer, Molly, is already working with global giants and government bodies, showing that an Indian MSME can be a global leader in the most cutting-edge of fields. With 1.5M+ users, 11,000+ brands on the waitlist, and successful pilots with global giants like Lowe’s USA, Suzuki, Panasonic, Zepto, and government bodies in Japan and India, Infloso is scaling rapidly across five countries.

These are some of the stories that the fifth edition of Tally MSME Honours, held across 7 cities in early July, brought to light. Each of the 20,000+ entries was a powerful story of transformation, rooted in resilience, innovation, and purpose. They show that across India, MSMEs are not just surviving. They are innovating and proving that our country’s economic future is not being built just by a few corporate giants, but the hard work of millions of small businesses who are dreaming big.

From Tech Transformers, who are reimagining operations through digital tools, to inspiring participation from Tier 2 towns like Karad, Sivakasi, and Bhilwara, the scale and depth of transformation were noteworthy.

“One of the most striking trends from this year’s Tally MSME Honours 2025 was the digital transformation led by legacy businesses, many of them run by seasoned entrepreneurs in their 60s – 70s. Particularly within the Tech Transformer category, it was inspiring to see these long-established business leaders embracing technology not as a disruption, but as an essential step to stay relevant and future-ready,” said Jayati Singh, Chief Marketing Officer & Interim India Business Head at Tally Solutions Pvt Ltd.

Using digital as an enabler

MSME’s today contribute to about 30 per cent of our Gross Domestic Product (GDP) and account for almost half of the country’s total exports. “Digital transformation has become a vital enabler for MSMEs, helping them scale, stay resilient, and compete in an increasingly dynamic economy. From automating financial operations to leveraging digital channels for customer engagement, technology is no longer a choice; it’s a necessity for sustained growth,” Singh added.

This shift is particularly empowering in smaller towns and emerging regions, where businesses are now able to overcome the limitations of manual processes and limited market access. Going digital allows MSMEs to operate with agility, tap into data for better decision-making, and integrate more easily with formal financial and regulatory systems.

However, despite being engines of innovation and employment, MSMEs continue to face several fundamental challenges, including limited access to formal financing and digital infrastructure, as well as a lack of exposure beyond their immediate markets, particularly in non-metro and remote regions. Many still operate in silos, making it difficult to scale or gain visibility outside their local ecosystems.

However, change is coming, and MSMEs are seeking new means to scale. A shift is being witnessed where an increasing number of businesses are building resilience, taking small but significant steps toward digital adoption, seeking visibility, and exploring new ways to grow. There has also been a rise in women-led enterprises and businesses emerging from Tier 2 and Tier 3 cities, pointing to a more inclusive and representative growth story.

There are three main levers powering growth for MSMEs and driving change – the government, corporates and technology providers. Each of these stakeholders brings something unique to the table, from the right policies to access, innovation, or visibility.

Governments can make a deeper impact by tuning into real stories and ground realities to create targeted and effective policies.

“Udyam Registration is a gateway for all MSME schemes of the government. One of the biggest issues seen with MSMEs is that of cash flows and delayed payments. Towards this, the ministry introduced a Delayed Payments Act for MSMEs where any vendor who delays payments is liable to pay three times the bank interest as a penalty. Further, buyers cannot delay payments beyond 45 days, as stipulated by the government,” said Praful Umare, Assistant Director, Ministry of MSME, Government of India, at the Mumbai event.

Furthermore, corporates can enable market access, offer mentorship, and create opportunities for collaboration, especially for MSMEs in underserved geographies. Strategic alliances with financial institutions can also help extend credit access to where it’s needed most.

Technology providers can play a pivotal role in simplifying tools, improving affordability and enabling digital adoption through education and localised support. Beyond access, inclusivity is essential, supporting women-led businesses, sustainability-focused enterprises, and first-time entrepreneurs is critical to building a more balanced ecosystem aligned with MSMEs.

Spotlighting success stories

Initiatives like Tally MSME Honours are a step in the right direction as they aim to spotlight success stories, not just to celebrate them, but to surface inspiration, build community, and encourage others to take that next step forward.

“We saw incredible stories in categories like Wonder Woman and NewGen Icon, where MSMEs were not just creating jobs but championing inclusive, purpose-led entrepreneurship. Equally inspiring were the Champions of Cause, businesses that are placing social impact and sustainability at the heart of their growth. Their stories reinforce our belief at Tally: that real change often starts small, but when supported, can ripple across economies and communities,” she further added.

The Tally MSME Honours platform goes beyond just recognition. Winners from each edition are engaged throughout the year across multiple platforms. They are invited to participate in knowledge-sharing sessions, panel discussions, ecosystem events, and networking forums curated by Tally. Many also get the opportunity to represent their regions and sectors on larger platforms, helping amplify their voice and inspire others.

“Our intent is to foster a thriving community of entrepreneurs who can learn from one another, share their expertise, and continue growing together. Our larger goal is to build a connected ecosystem where small businesses don’t just get recognised but are empowered to thrive,” Singh concluded.